Four top private lenders HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank reported their first quarter earnings over the weekend. The net interes…
1/6Four top private lenders HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank reported their first quarter earnings over the weekend. ICICI Bank posted its best all-round print among the large private lenders. The net interest margins (NIM) contracted across three out of the four lenders, with ICICI Bank being the lone one expanding its margins. Fresh slippages increased across banks, but the same was largely a seasonality factor. The credit growth outpaced deposit growth at every lender. Meanwhile, corporate credit growth pick up seen across lenders as bond funding gets costly.
2/6Profitability | All four banks reported an increase in their profit after tax (PAT) in the June quarter. Kotak Mahindra Bank reported the highest increase of 25.6%, followed by Axis Bank, ICICI Bank. Meanwhile, HDFC Bank’s PAT increased 5%.
3/6NII | ICICI Bank witnessed the highest increase in its net interest income of 12.7%, followed by Kotak Mahindra Bank at 9.2%, Axis Bank at 8% and HDFC Bank at 6.7%.
4/6Advances and deposits | ICICI Bank’s advances increased 19.6%, while Axis Bank’s were up 19%, followed by Kotak Mahindra Bank and HDFC Bank. Meanwhile, Axis Bank reported the highest increase in deposits at 18%, followed by around 14%-15% for HDFC bank, ICICI Bank and 12% for Kotak Mahindra Bank. All numbers compared on a year-on-year basis.
5/6Net Interest Margin | ICICI Bank is the only one among the large lenders, that reported an increase in its net interest margins (NIMs), which increased by 4 basis points (bps) sequentially to 4.36%. Meanwhile, margins of Axis Bank, Kotak Mahindra Bank and HDFC Bank contracted by 16 bps, 14 bps and 12 bps, respectively.
6/6Asset quality | ICICI Bank and Kotak Mahindra Bank’s gross non performing assets (NPA) improved by 2 bps each, while of Axis Bank and HDFC Bank increased by 5 and 2 bps, respectively. Fresh slippages increased across all four lenders.
